He balance sheets for Chesser Company for the years ended December 31, Year 2 and Year 1, are as follows: Year 2 Year 1 Cash $106,000 $100,000 Accounts receivable 74,000 96,000 Inventories 217,000 200,000 Investments — 140,000 Equipment 1,146,400 900,000 Accumulated depreciation—equipment (284,000) (352,000) $1,259,400 $1,084,000 Accounts payable $125,000 $87,600 Bonds payable, due in Year 2 — 200,000 Common stock, $10 par 650,000 570,000 Paid-in capital in excess of par 160,000 110,000 Retained earnings 324,400 116,400 $1,259,400 $1,084,000 The income statement for the current year is as follows: Sales $1,251,400 Cost of merchandise sold 680,000 Gross profit $571,400 Operating expenses: Depreciation expense $52,000 Other operating expenses 136,000 198,000 Income from operations $383,400 Other income: Gain on sale of investment $8,000 Other expense: Interest expense 12,000 (4,000) Income before income tax $379,400 Income taxes 121,400 Net income $258,000 Additional information for Year 2 is as follows: (a) Fully depreciated equipment costing $120,000 was scrapped with no salvage value, and new equipment was purchased for $366,400. (b) Bonds payable for $200,000 were retired by payment of their face amount. (c) 5,000 shares of common stock were issued at $26 for cash. (d) Cash dividends of $50,000 were declared and paid. Using the indirect method for the statement of cash flows, the gain on sale on investments would appear:
Answers: 2
Business, 22.06.2019 01:30
Monica needs to assess the slide sequence and make quick changes to it. which view should she use in her presentation program? a. outline b. slide show c. slide sorter d. notes page e. handout
Answers: 1
Business, 22.06.2019 08:00
3. describe the purpose of the sec. (1-4 sentences. 2.0 points)
Answers: 3
Business, 22.06.2019 19:40
Aprimary advantage of organizing economic activity within firms is thea. ability to coordinate highly complex tasks to allow for specialized division of labor. b. low administrative costs because of reduced bureaucracy. c. eradication of the principal-agent problem. d. high-powered incentive to work as salaried employees for an existing firm.
Answers: 1
He balance sheets for Chesser Company for the years ended December 31, Year 2 and Year 1, are as fol...
Mathematics, 13.02.2020 03:27
Mathematics, 13.02.2020 03:27
Physics, 13.02.2020 03:27
Computers and Technology, 13.02.2020 03:27
SAT, 13.02.2020 03:28
Spanish, 13.02.2020 03:28
English, 13.02.2020 03:28
Health, 13.02.2020 03:28
Mathematics, 13.02.2020 03:28
Social Studies, 13.02.2020 03:28